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Sap HR Tutorial PDF
Sap HR Tutorial PDF
Audience
Human capital management products from SAP can help your organization hire and retain
the right people, manage the work environment, streamline HR processes, ensure legal
compliance, and create a people-centric organization.
This tutorial is designed to configure the HR module of SAP in an easy and systematic way.
Packed with plenty of screenshots, it will be useful for consultants as well as end-users.
Prerequisites
Before you start proceeding with this tutorial, we are assuming that you are already aware
of the basics of SAP. It will be helpful if you have some exposure to the HR functions
normally conducted in an organization.
All the content and graphics published in this e-book are the property of Tutorials Point (I)
Pvt. Ltd. The user of this e-book is prohibited to reuse, retain, copy, distribute or republish
any contents or a part of contents of this e-book in any manner without written consent
of the publisher.
We strive to update the contents of our website and tutorials as timely and as precisely as
possible, however, the contents may contain inaccuracies or errors. Tutorials Point (I) Pvt.
Ltd. provides no guarantee regarding the accuracy, timeliness or completeness of our
website or its contents including this tutorial. If you discover any errors on our website or
in this tutorial, please notify us at contact@tutorialspoint.com
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SAP HR
Table of Contents
About the Tutorial ............................................................................................................................................ i
Audience ........................................................................................................................................................... i
Prerequisites ..................................................................................................................................................... i
Copyright & Disclaimer ..................................................................................................................................... i
Table of Contents ............................................................................................................................................ ii
OVERVIEW .................................................................................................................................. 1
7. SAP HR – Infotypes.................................................................................................................................. 30
Creating an Infotype ...................................................................................................................................... 31
Display an Infotype ........................................................................................................................................ 32
Delete an Infotype ......................................................................................................................................... 34
BENEFITS................................................................................................................................... 71
PAYROLL.................................................................................................................................... 78
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Overview
1
1. SAP HR – Introduction SAP HR
SAP Human Capital Management (SAP HCM) is one of the key modules in SAP and is also
called SAP Human Resource (HR) or SAP Human Resource Management System (SAP
HRMS). SAP HCM contains many submodules and all these modules are integrated with
each other.
Payroll: Payroll deals with payroll types, payroll group configuration, primary and
secondary wages, gross pay, bonus, etc.
Training and Event Management: Training and Event Management deals with
identifying training needs, scheduling training, training cost management, etc.
Organization Management
Organization Management allows you to manage the enterprise structure and analyze
organization plans.
You can define plan version to configure various organization plans at the same
time.
You can edit, change or compare different organization plans using plan version.
You can have two different plan versions, one for marketing and other one for sales
hierarchy.
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You can compare or edit both the plans but only one plan can be used at a time.
2. Go to IMG -> Personnel Management -> Global Settings -> Plan Version Maintenance
-> Maintain Plan Versions.
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Relationship
In an Organization plan, relationships are used to link different object types.
Example: A person holding a position in an organization and is assigned with cost center.
It defines Person to position relationship and position to Organization unit.
Validity
It determines the life of object types. At the time of object creation, you enter the start
and the end time of the project and this determines the validity of the object.
There are various types of object types that can be defined in an organization plan. Given
below are most common object types and their keys-
You can create or change an existing object types, which are not managed.
Example- Object type person from HR Master Data.
You can also define the relationship between different object types that should be
proposed in the course of the authorization check.
It is also possible to change the key of standard objects type- "S" for Position, "T"
for task.
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Number Ranges
You can maintain different number ranges for Organization Management and Personnel
administration in SAP HR. As discussed in previous topic, OM contains different object
types.
To maintain the different number ranges for OM objects, you can use T-Code: OONR.
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The first two digits represent your plan version and the next two letters represent the
object type.
Similarly, you can maintain number ranges for personnel numbers. A Personnel number is
generated when an employee is hired. It can be generated internally or externally.
The personnel number range whether internal or external should be defined at the
following configuration node.
2. You can also go to SPRO -> IMG-> Personnel management-> Personnel Administration
-> Basic settings->Maintain number range intervals for personnel numbers.
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3. A new window opens. You will see Range Maintenance: Human resources. Go to
Intervals to display intervals.
4. It will open a new window, Maintain Intervals: Human resources. You can check
different number ranges for personnel number as shown below:
The NR Status indicates the last personnel number assigned/used up for that respective
MOLGA. MOLGA Is used to support multi-country human resource management.
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2. SAP HR – Maintaining Relationships SAP HR
A relationship can be created in both the ways- top down and bottom approach. These
relationships are normally maintained in HRP001 table. If these relationships are not
standard, you may need additional tables.
Select the Object type, enter position number, give relationship and click create (F5).
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SAP HR
To create new object type and assigning relationships follow the steps given below.
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7. Go to the Change View “Object Types”: Overview window. Click New Entries to
create a new object type. You can also copy an existing object type.
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8. Enter Object type text, code, etc. When the object is created, assign essential
relationships to it by clicking on essential relationships on the left side.
Relationship Maintenance
For maintaining relationship in SAP HR module, go to SPRO ->IMG -> Personnel Management
-> Organizational Management -> Basic Settings -> Data model enhancement ->Relationship
Maintenance -> Maintain Relationships -> Execute
In the left pane, go to Allowed Relationships, select the relationship you want to
maintain, click Position.
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3. SAP HR – Time Constraints SAP HR
Time constraints are used to determine how the object type exists and how they will be
updated in the HR system.
You can also define time constraints for object types in Organization management to have
a suitable system. You need not to keep orphan object types in the system.
Time Constraint 1 is mandatory for a record to exist in the HR system and can
exist one at any point of time.
Time Constraint 2 is not mandatory for a record but only one exists at any point
of time.
Time Constraint 3 is not mandatory for a record and can have many at any point
of time.
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SPRO ->IMG -> Personnel Management -> Organizational Management -> Basic Settings -> Data
model enhancement ->Relationship Maintenance -> Maintain Relationships -> Execute
2. In the left pane, go to the Time constraint tab as shown in the image given below-
Time Constraint 1 – Record must have no gaps, no overlapping. If you select this
Time Constraint, there should not be any gaps nor overlapping. This TC is generally
used for Infotypes like, 0001, 0008, 0009 etc. where there is only one valid record.
Time Constraint 2 – This TC includes those records that can include gaps but
there should be no overlapping. If you select this TC, it means that you can have
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Time Constraint 3 – This TC includes records that can have gaps and can exist
multiple times. For example, Infotype IT0014 can have multiple records in that
particular Infotype at the same time with overlapping.
1. To perform a Personnel action, use T-Code: PA 40 or go to SPRO -> IMG -> Personnel
Management -> Personnel Administration -> Customizing Procedures -> Actions
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Personnel No.: This field has an employee’s personnel number. When a new
employee is hired, it is generated automatically by the system.
Start: This field shows the start date of the personnel action.
Action Type: In this field, you have to select the action type that needs to be
performed.
Example
Let us understand how a new employee is hired in SAP HR system.
A new window will open. Enter details like Reason for action, Personnel area, Employee
group and sub group, etc. and click the Save icon at the top.
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4. SAP HR – Maintaining Infotypes SAP HR
In SAP HR system, Infotypes are used to store the data for all the personnel actions and
administrative tasks in the system. Infotypes are known as small units of information in
SAP HR system.
Infotypes group the similar data together and define structure, enter data and define the
information for specific period of time.
Components of Infotypes
An Infotype consists of the following components-
Structure
An Infotype contains a set of similar data records in the form of data structure. Infotype
contains series of information like first name, last name, date of birth, marital status, etc.
When an Infotype is updated in the system, old data is not removed from the system but
time is delimited.
Data Entry
You can enter predefined values for Infotype that helps in fetching and maintaining the
data in the system. Entries in HR system are checked automatically for accuracy. Default
value checks depend on the employee organization assignment.
Time Dependency
When an Infotype is updated in the system, old data is not erased. It is stored in the
system for historical evaluation purpose. This allows each Infotype to have multiple
records but all the records may vary as per their validity.
Time based reaction of Infotype is defined in the Time constraint field. Infotype 0000 to
0999 are Personnel Administration Infotypes. It is also possible to define permissibility of
Infotype for each country, this allows you to restrict Infotype while editing the master
data.
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Go to SPRO -> IMG -> Personnel Management -> Personnel Administration-> Customizing
Procedures -> Infotypes -> Assign Infotypes to Countries
1. Go to SPRO - > IMG -> Personnel Management - > Organizational Management - >
Basic Setting -> Data model enhancement - >Infotype Maintenance - > Maintain Infotypes
-> Execute
2. Select the Infotypes to which the newly created custom object needs to be assigned.
Select the Infotype and click the Infotypes per object type option.
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3. To assign custom objects to Infotype, click the New Entries option. You can uncheck
the No Maintenance check box such that you can maintain custom objects via
Organization Management transactions PP01.
You can assign different control features to sub types as per requirement like TC1, TC2,
and TC3.
Example
Consider the example of an Infotype Addresses (0006). Following are the subtypes-
Considering Control feature – Time constraint for this Infotype, you should use TC-3 for
Infotype Addresses, as we need to pass multiple values. Permanent Residence address
subtype should be Time Constraint -1. Home address can exist once at any one time,
hence it is Time Constraint -2.
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1. Go to SPRO - > IMG -> Personnel Management - > Organizational Management - >
Data model enhancement - >Infotype Maintenance - > Maintain subtypes -> Execute
2. To maintain subtype, select the subtype in the next window. In the left pane, you have
an option to add control feature - Time Constraint.
3. Double click the Time constraint in the left pane, a new window ‘Change View “Time
Constraint”: Overview’ will open.
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Personnel Administration
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5. SAP HR – Personnel Administration SAP HR
Organization Structure
Organizational structures is used in HR to plan and map the organizational levels of an
organization to control and simplify processes such as time recording and payroll. Typical
components in an organizational structures include:
Enterprise structure
Pay scale structure
Wage types
Personnel structure
User authorizations
In Organization hierarchy, you define the subdivision of company into personnel areas,
sub areas, company code, etc. Using different grouping, you can create organizational
hierarchies and control functions. Using grouping, you can set up enterprise and personnel
structure that are independent of each other.
By assigning an employee to personnel and enterprise structure, you can easily process
human resource data of an employee. By using the default values, it is easy to manage
data for different fields.
To evaluate human resource data, you can use the Organizational structures for creating
evaluations and analyses of employee data for Controlling and departments.
Enterprise Structure
Enterprise structure of an organization is defined as structure to manage Personnel
administration, payroll processing, and time management for a company. Enterprise
structure defines the key components in a company and their relationship with each other.
Client
Company Code
Personnel area
Personnel subarea
Organizational Key
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Client
A client is known as an organizational and data technical isolated unit in SAP ERP system
and each unit has separate master records and its own separate record of tables.
Company code
It is called the smallest organizational unit of external accounting in which a complete and
isolated financial accounting can be created. Example: Profit and loss calculation, balance
sheets are contained within the company code organizational units.
Personnel area
The personnel area is used in Personnel Administration in HR system and is unique within
a client.
Organizational data and steps to assign it are stored on a personnel area and
subarea. The guidelines can include pay scale, legal or collective agreement, etc.
A pay scale area, a pay scale type and a public holiday calendar are precisely
defined for a personnel subarea.
Personnel subarea
The personnel subarea is used only in Personnel Administration in SAP ERP. The groupings
linked to the personnel subarea determine which entries from the subsequent screen are
allowed for an employee of a particular company code.
Example:
The personnel area in a software company can be subdivided into development, training
and administration personnel subareas.
Groupings are used for validation of master and time data. Groupings are also used to
check the plausibility of data that you enter.
Organizational key
Using an Organizational key, you can define the organizational assignment more precisely.
An organizational key can consist objects from enterprise structure and personnel
structure.
Personnel Structure
Personnel structure is used to define an employee’s position in an organization. Personnel
structure can be divided into two parts-
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Administrative Structure
Organizational Structure
Employee group
Employee subgroup
Payroll area
Position
Job
Organizational unit
Hiring an Employee
To perform a Personnel action, follow the steps given below-
1. Use T-Code: PA 40 or go to SPRO -> IMG -> Personnel Management -> Personnel
Administration -> Customizing Procedures -> Actions
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Personnel No- This field has an employee’s personnel number. When a new
employee is hired, it is generated automatically by the system.
Action Type- In this field, you have to select the action type that needs to be
performed.
3. The next step is to enter the hiring date as shown below. From the menu of Action type,
select Hire. Click the Execute option at top.
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4. In the next window, enter the details like Reason for action, Personnel area, Employee
group and sub group, etc. and click the Save icon at the top.
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6. SAP HR – HR Master Data SAP HR
Maintaining the HR Master Data function allows you to maintain employee data tasks like
entering the data, update, etc.
Data related to an employee is entered in various Infotypes. For example, Infotype 0002
contains personal information of an employee like name, date of birth, marital status, etc.
Infotypes are used to group similar data and makes it easier to process.
Maintaining HR Master Data function allows you to access an employee’s Infotype records
individually. Similarly, you can use fast entry function to maintain employee data
simultaneously for multiple employees.
Create function
The Create function allows you to enter the new Infotype record in the system. You can
create new Infotype record and in addition, retain the old records in the system. Validity
of new record is defined.
Change function
The Change function is used to edit an existing Infotype without creating a new Infotype.
Using the change function, the previous value of Infotype is changed and any previous
value is not stored.
Delete function
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The Delete function allows you to delete an Infotype record in the HR system. When you
delete an Infotype record with time constraint 1, it extends the previous record
automatically.
Copy function
The Copy function allows you to create a new Infotype record and update history. This
function does not enter data on a new screen but asks to enter information on a screen
containing the data.
Display function
You can use the Display function to view an Infotype on the screen. In display mode, you
cannot process or update data.
Using the List function, you can display an overview of all the records stored for a specified
Infotype.
Once you search an employee, you can check the employee Infotype record in the system.
Infotype search can be performed using the following methods-
Selecting an Infotype using functional area – You can also search an Infotype using
functional area as SAP HCM system contains similar Infotypes group together.
o Personal Data
o Payroll Data
Selecting Infotype using text – You can also search an Infotype by typing text
search term. System displays all the Infotype whose name matches the search
item.
Selecting an Infotype using Personnel file – You can also search an Infotype using
a personnel file.
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7. SAP HR – Infotypes SAP HR
Infotype is used to store personal data about an employee. An Infotype contains four digit
code and name of Infotype.
Example: Infotype 002 contains employee personal data- like name, date of birth, marital
status, etc.
Mandate fields: A tick mark sign in the field box represents these fields.
Option fields: These fields are not mandatory and can have a blank value.
There are predefined number ranges that SAP has defined for Infotype.
You can further divide an Infotype into groups, which are called subtypes. For example,
an Infotype Address, Infotype 0006 can be divided into subtypes- Permanent Residence
and Emergency address.
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Creating an Infotype
To create an Infotype follow the given steps-
2. A new window Maintain HR Master Data opens. Enter the personnel number and
press Enter.
3. Enter the Infotype you wish to select for a new record and click the Create button.
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In the Period section, select the start and the end date for an Infotype.
4. In the next window, select Personnel action. Once you enter all the details click Save.
Display an Infotype
You can search an Infotype by its name or number.
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2. In the new window, enter the personnel number and press Enter.
3. Select the Infotype you want to display. Click F7 or the icon at the top.
4. In the new window, all the fields will be deactivated and you will see the details of the
selected Infotype.
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5. Similarly, you can copy or change an existing Infotype using T-code: PA30.
Delete an Infotype
To delete an Infotype, follow the steps given below.
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2. Enter the Personnel number and select the Infotype you want to delete.
3. In the next window, you will see a summary of data that will be deleted. Click Delete.
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8. SAP HR – Personnel Actions SAP HR
In SAP HR system, personnel actions are performed for all the Infotypes that require the
data to be entered in HR system. Some common Infotypes that require a personnel action
are hiring a new employee, termination of an employee, etc.
1. Use T-Code: PA 40 or go to SPRO -> IMG -> Personnel Management -> Personnel
Administration -> Customizing Procedures -> Actions.
Personnel No: This field has an employee’s personnel number. When a new
employee is hired, this is generated automatically by the system.
Start: This field presents the start date of the personnel action.
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Action Type: In this field, you have to select the action type that needs to be
performed.
Example
Let us understand how a new employee is hired in a SAP HR system.
1. Enter the hiring date as shown in the image given below. Under the Action type, select
Hire. Click the Execute option at the top.
2. In the new window, enter the details like Reason for action, Personnel area, Employee
group and sub group, etc. and click the Save icon at the top.
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1. Go to SPRO -> IMG -> Enterprise Structure -> Definition -> Financial Accounting ->
Define Company
3. Enter the details like Company, Company Name, Address as shown below-
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1. Go to SPRO -> IMG -> Enterprise Structure -> Assignment -> Finance Accounting ->
Assign Company Code to Company -> Execute.
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1. Go to SPRO -> IMG -> Enterprise Structure -> Definition -> Human Resource
Management -> Personnel areas.
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2. Go to New Entries and fill the details. Click the save icon at the top.
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9. SAP HR – Changing Infotypes SAP HR
As SAP provides various Infotypes that are grouped together for different information
groups. Sometimes you need to modify the standard Infotypes as per business
requirement.
Customization of Infotypes can be done by hiding standard Infotypes fields as per business
requirement or you can also add custom Infotype fields in the structure.
Following are the fields that can be used to configure the Infotype screen:
These are fields, which are used to maintain the screen layout and are maintained using
the T-code: PE04.
1. Go to SPRO -> IMG -> Personnel Management -> Personnel Administration ->
Customizing User Interface -> Change Screen Modifications -> Execute.
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2. In the next window, you will see all Infotype screen controls like Mod. Pool, Screen,
Feature, Variable key, etc. To create a new control, click the tab New Entries.
3. In the new window, enter the values as shown below and press the ENTER key.
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Important:
Once you press ENTER, it will show you all the fields of this Infotype. In screen control,
you will see five radio buttons against each entry. These radio buttons include:
Std means Standard setting: When you select this option, the field
characteristics correspond to the standard setting.
RF means Required field: Select this check box to define the screen field as a
required field.
OF means Optional field: Select this option to define the field as an optional field.
Outp means not ready for input: This can be selected to mark the field. It is an
output field only and is not used for input.
Hide means hiding a field: This option is selected to hide the screen field.
Init means hide and Initialize: If this option is selected, the screen field is
hidden.
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5. Click the Feature button; you can add values for subtypes.
6. This will take you to the initial screen of Features. Click Change to change the values.
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8. Select the subtype and click Create. Select the Return Value and press ENTER.
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9. Enter the Return value as Variable key -501 and click Transfer.
10. Click Save and press the activate icon at the top.
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The time wage types in tables ZL, ALP, and C1 (Cluster B2) represent the interface
between time evaluation(TM) and payroll.
The integration of TM with other components can be found in the following IMG path.
SPRO -> IMG -> Time Management -> Integrating Time Management with other SAP
Applications.
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Time Management
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10. SAP HR – Time Management SAP HR
Quota driven absences: This absence type includes the leave taken from the
allocated limit in a specific time period. Example: Casual Leaves, Earned Leaves.
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Non quota driven absences: This absence type includes all unplanned leaves and
are not a part of allocated limit in a time frame. Example: Leave without pay, Study
leave. Etc.
Absences 2001
Attendance 2002
Overtime 2005
Absence – Quota Driven 2006
Attendance – Quota Driven 2007
Time Events 2011
Time Evaluation
Time evaluation is used to record the attendance of an employee and to record his absence
from work. Time recording is required to process the payroll. Time evaluation is run for
specific employees and all the employees are not required to process time evaluation.
Enter details like Personnel Number, Evaluation Schema and Evaluation up to.
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o With Clock time: In this type of time recording, full time recording is
captured.
o Without Clock time: It includes capturing only the number of works hours.
Positive time recording is difficult to implement as you need to define each type of
attendance.
Positive time recording deals with daily attendance, absence and over time.
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Negative time recording includes no clock times and assumes employee is working
until absences are entered.
Negative time recording reads deviation like absence, compoff, overtime, etc.
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11. SAP HR – Work schedules SAP HR
Various elements combine to form a complete work schedule. You can process work
schedule elements that provide flexibility while you define and set the time relevant data
as per business requirements. With work time elements, you can react to the changes in
internal and external work time provisions, with less expenditure on time and cost.
You just need to make the changes to the applicable elements as per new time provision
and it allows you to make the changes in work time in the work time schedule
automatically.
Work time model: It consists of a combination of the working and non-working days.
Example – Mon - Friday are working days and Sat-Sun are non-working days. This work
time model can repeat itself for a certain period of time.
You can generate work schedules by applying work schedule rule to a calendar. Working
times for an employee group and for individual employees are defined as per work
schedules.
A period work schedule is assigned to an employee in a work schedule rule. Personal work
schedule is also defined for each employee while including individual time data in work
schedule for several employees in Infotypes 2001 Absences, 2002 Attendances, etc.
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ES group for WS: Update the text of the employee subgroup and click the save icon.
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5. Go back to SPRO -> IMG -> Time Management -> Work Schedules -> Work Schedule
rule and work schedules -> Define employee subgroup grouping.
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8. The next step is to set the work schedule rules and work schedules-
Go to SPRO -> IMG -> Time Management -> Work Schedules -> Work Schedule rules and
work schedules -> Set Work schedule rules and work schedule
10. Enter the ES grouping key and other details as per your organization requirement.
Click the Save icon to save the configuration.
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1. Go to SPRO -> IMG -> Time Management -> Work Schedules -> Work Schedule rule
and work schedules -> work schedule in batch.
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12. SAP HR – Public Holiday Calendar SAP HR
Public Holiday Calendar contains a collection of public holidays, which are valid for a
location - Personnel Area and Personnel Subarea. You can say that a company having
office in Chennai and Hyderabad will have two different public holiday calendars.
Therefore, it means that a public holiday’s calendar that is valid for Chennai employees
will not be applicable for Hyderabad employees.
2. When you execute this transaction code, you see the following screen-
3. We first create a list of public holidays for a country and then assign these holidays to
different locations. For example, one holiday - Republic day is valid for both Chennai and
Hyderabad. You have to create one public holiday and assign it to the public holiday
calendar for both the locations.
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Public Holiday: This field displays the long text of the Public Holiday.
Short Text: This field displays the short text of the Public Holiday.
Use in Holiday Cal.: This field helps us to check if a public holiday is being used
in a public holiday calendar or not. It is not possible to edit a public holiday when
it is being used in a public holiday calendar. To edit a calendar, you have to remove
it from all the public holiday calendars where it is used and then make the necessary
changes and again re-assign the public holiday to the relevant public holiday
calendars.
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Sort Key: This field helps to group together all the public holidays valid for a
country. Sort key is a three-character key. It is recommended that its naming
convention should be in the “Znn” format, where “nn” defines the country grouping.
For example, the sort keys for public holidays for Australia and India are Australia-
Z13 and India-Z40 respectively.
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13. SAP HR – Attendance Absences SAP HR
To maintain attendance and absence in SAP HR system, go to SPRO -> IMG -> Time
Management -> Time data recording and administration -> Absence
To view attendance quotas and absence quotas of your employee, you can use this
query-
Query: 0HCM_PT_T01_Q0001
With quota entitlement, this also includes compensated, deducted and unused
quotas.
To obtain details about an employee’s attendances and absences, you can use
query-
Query: 0HCM_PT_T01_Q0002
This query is called from manager self-service from attendance and absence quota
overview query and the results display the information for the employee that you selected
in a query.
Shift Management in HR
Shift management deals with accurately defining the number and the type of resources
that are required to run the business operations.
Shift planning is one of the components of Personnel time management. Exchange of data
between human resources and personnel management components ensures the data
given below-
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1. Human Resource -> Time Management -> Shift Planning -> Change Shift Plan
2. Select the Shift Planning profile and Organizational Unit as shown in the screen shot
given below and click Change.
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3. You can select the shift plan. In the Shift plan status field, select the ID of the desired
shift plan (either target or actual plan).
In the Planning period section of the screen, select the time period for which you want to
plan the shifts.
You can use Shift plans to display the employees who are selected from the
evaluation path of the entry profile and the entry objects.
The calendar for the desired planning period can be checked and it can be used to
view additional information like organizational unit, personnel number, etc. for a
selected employee in a separate information column.
Note that it is possible to change the target plans at any time till a target plan is
complete. You can only edit the actual plan once you have completed the target
plan. You can change actual plans at any time.
To change a target plan if it is not completed, you need to set target plan complete
or partially deleted.
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Example: Break timings are fixed, i.e. 1:30 PM to 2:30 PM and an employee has to take
a break daily during this time interval.
Example: Break duration - 12:30 PM to 2:30 PM. An employee can take any one hour as
break and if the break time exceeds the fixed break time, the salary is reduced.
Example: An Employee can take a break after working continuously for 4 hours from the
start of the shift. In this case, if an employee’s shift starts at 9:00 AM, he can take the
break at 1:00 PM.
Example:
Following are the T-Codes that can be used to manage work schedule-
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Benefits
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14. SAP HR – Benefits SAP HR
The Benefit section in SAP HR management allows you to use the benefit tools for custom
benefits provided by an organization to its employees. Benefits play an important role in
employee retention to keep the best possible employees in a company.
To use Benefits Management for a country payroll, which is not integrated, in conjunction
with non-SAP payroll software or an external payroll service, you must provide your own
interface for the transfer of data.
Enrollment Overview
Enrollment is a process of enrolling employees of an organization under the benefit
management. Enrollment Plan selection for an employee depends on employee eligibility.
The Enrollment function allows you to enroll the employees and to make changes to the
employee benefit selection as required for the following tasks:
u2022 – Enrollment of employees during an open enrollment period in plans for the
coming Season.
u2022 – Enrollment of new hires in default plans as an interim measure, until they
have made their benefits choices
Types of Enrollment
Following are the types of enrollment that can be used-
Important features-
Open enrollment type is generated by the system when you start enrollment for a
date that lies within an open enrollment period.
It includes only those enrollment plans, which require the employees to meet some
certain criteria. This is defined in customizing the field in SAP HR system.
Open Enrollment period is called the time period when an organization allows its
employees to enroll in new benefits plans or change any existing enrollment plan.
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Enrollment plans, which are available for selection during the open enrollment start
on some specific future data and normally at the start of the new financial year.
The benefits offer set up for open enrollment is valid only during the open
enrollment period.
Example
Consider an organization that allows an employee to select its benefits on an annual basis
for the coming year. The open enrollment period is 1 Sep 2015 - 30 Sep 2015 and any
new benefits that are elected by employees are valid from 1 Apr 2016 to 31 Mar 2017.
These default plans are commonly used for giving short-term coverage to new hires and
therefore often allow little flexibility to the employee regarding the plan terms.
Automatic Enrollment plans are normally provided to the employees at no extra cost and
also allow little flexibility to the employee regarding the plan terms.
Some examples of adjustment reasons are Marriage, Hiring (initial enrollment), New
dependent, Job change etc.
Benefit Area
Using Benefit areas, you can have separate administration of different benefit plan pools.
The division is performed primarily for administrational purposes and would not normally
be used for eligibility. This is a primary subdivision of plan set up within the benefits
component.
Benefit areas in SAP HR are independent from each other. They are configured and function
independently. Typically, employees will be enrolled in a benefit area that groups them
according to common attributes such as country or organizational assignment.
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1. To define benefit area, go to SPRO -> IMG ->Personnel Management -> Benefits ->
Basics Settings -> Define Benefit Area ->Execute
01 Germany
02 Switzerland
03 Austria
04 Spain
05 The Netherlands
06 France
07 Canada
08 Great Britain
09 Denmark
10 USA
11 Ireland
12 Belgium
13 Australia
14 Malaysia
15 Italy
16 South Africa
17 Venezuela
18 Czech Republic
19 Portugal
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20 Norway
21 Hungary
22 Japan
2. To create a new Benefit area, click New Entries. Enter the fields - Benefit Area, Country
Grouping, Name of HR country grpg.
Benefit Category
Benefit category defines the classification of benefit plans. Benefit category is always
maintained in SAP HR system. Given below are the key benefit categories:
Health Plans
Insurance Plans
Savings Plans
Stock Purchase Plans
Flexible Spending Accounts
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Credit Plans
Miscellaneous Plans
In SAP HR system, all these categories are predefined and HR system handles each
category differently. Benefit plan types are defined within each category to reflect your
requirements.
Benefit Category is at the highest level in Benefit Plan structure. Benefit Categories are
again divided into Plan types and every category can contain one or more Benefit Plan
types.
MEDI: stands for Medical plan and belongs to Health Plan Category
SAVE: stands for Savings and belongs to Savings Plans Category
STPC: stands for Stock purchase and belongs to stock Option Category
DCAR: stands for dependent care spending and belongs to flexible spending Accts
LIFE: stands for Life Insurance and belongs to Insurance Plans Category
CRED: stands for flex credit and belongs to Credit Plans Category
CAR: stands for Company car and belongs to Miscellaneous Plans Category
Benefit Plan types are used for enrollment and the system does not allow an employee to
enroll in more than one benefit plan per plan type.
Benefit Plans
Benefit plan structure at the granularity level is defined by Benefit Plans. You can group
multiple Benefit plans under a particular plan type. All the benefit Plans are identified with
a unique identifier, which consists of maximum of four characters as mentioned above.
Example
MEDI, VISI, DENT represents health Plans Category for medical MEDI Plan Type.
Benefit plans within the health plan category cover the basic health needs of an employee.
A typical health plan might provide an employee with medical, dental or vision coverage.
Similarly, you can have an Insurance plan, which is used to provide monetary amounts of
coverage payable to the employees in an organization.
To setup account balance to meet spending needs, a spending account can be used that
provides an employee with the opportunity to establish account balances. Most common
needs that can be associated with spending account includes health, dependent care, and
legal benefit, etc.
Example
Following are the common benefit plan types for each of the plan categories:
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Health Plans
Insurance Plans
Life insurance
Dependent life insurance
Supplemental life insurance
Savings Plans
Retirement plan
Savings plan
Credit Plans
Cafeteria plan
Miscellaneous Plans
Company car
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Payroll
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15. SAP HR – Payroll Management SAP HR
Payroll is one of the key components in SAP HR module and is used to process payroll of
employees in an organization.
Data retention allows you to use master data and other payroll related data from
Personnel Administration.
Time data from Time Management is included in Payroll and is used during the
payroll run.
Expenses and payable information from SAP Payroll component is posted directly
in Financial Accounting FICO to assign a cost center for all the costs.
SAP Payroll system also calculates the gross pay and the net pay. It consists of
payments for each employee and deductions made during a payroll period. All
payments and deductions are included in the remuneration calculation using
different wage types.
You have to set up Payroll control record manually for each part of payroll run.
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1. Use the T-Code: PA03. Select the Payroll area and click the change icon.
Payroll Status: This determines the status of payroll run. It also defines the
current payroll period and number of times a payroll has been run.
Earliest retro acctg period: This indicates the greatest earliest payroll period for
retroactive accounting.
Last change to personnel control record: This shows the details of the person
who has changed Payroll Control Record and what kind of changes are made.
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Incorrect Personnel Numbers: This is used to check the number of employees rejected
in last payroll run.
List Personnel Numbers: This is used to get a list of employees included in the payroll
area.
Locked Personnel Numbers: This is used to obtain a list of employees locked out of
payroll in Infotype 0003 (Payroll Status in SAP HR, stopping the ability to execute a payroll
run for them.
Release mode: If you want to run payroll in update status, release mode should
be used.
Corrections: means data can be changed. Must subsequently move into release
mode to update that data change
Check payroll results: You can’t change the data in this mode. It is used to run
the reports related to payroll.
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16. SAP HR – Basic Pay Infotypes SAP HR
In case an employee leaves an organization, the basic payroll data for that employee
remains in the system to ensure accuracy of any retroactive account runs to be performed.
A basic pay Infotype 0008 can be processed itself with a personnel action. To create a new
record you need to enter payment type on maintain HR master data screen.
Basic contract
Increase basic contract
Comparable domestic pay
Refund of costs in foreign currency
Local weighting allowance
A pay scale reclassification is performed in a payroll period prior to running the payroll.
The pay scale reclassification must always take place before the standard pay increase.
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To perform pay scale reclassification, go to SPRO -> IMG -> Personnel Management ->
Personnel Administration -> Payroll Data -> Basic Pay -> Pay Scale Changes -> Pay Scale
reclassification -> Specify pay scale reclassification
The default values are suggested for payscale type and groups and linked to personnel
subarea when you create a record in basic pay Infotype (0008).
Pay scale type is also defined in customizing Personnel administration and is identified by
four character alphanumeric identifier per country. You define pay scale groups and level
for each pay scale area and employee subgroup grouping in each pay scale type.
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A Pay scale groups and pay scale levels are used to define the criteria to classify data for
job evaluations and indirect valuations. Each pay scale groups is further divided in pay
scale levels.
In customizing for Personnel administration, you define pay scale groups and levels per
country grouping, pay scale area, type and employee subgroup grouping.
A pay scale group is defined with an alphanumeric identifier with a maximum of eight
characters and pay scale levels are described with a two-character alphanumeric identifier.
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17. SAP HR – Primary & Secondary Wage types SAP HR
Wage type is one of the key components in payroll processing. Based on the way they
store information, wage type can be divided into two categories.
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These wage types are system generated and cannot be maintained online.
Amount AMT
Rate RTE
Number NUM
As per processing type each element can have one, two or all element values.
Example
Basic pay can have Rate and Number. However, a bonus pay can have only amount.
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18. SAP HR – Payroll Process SAP HR
Payroll is processed to calculate the basic salary for the employees and other payments
like overtime, shift allowance, and other bonuses. A payroll is processed at certain point
of time.
You need to mention the payroll area for which payroll should run. To execute payroll run
for multiple payroll areas, you need to run the individually for each payroll area. To lock a
payroll for a particular employee, you should use lock Personnel number function.
Payroll control record is used to control the payroll process as mentioned in previous topics
and status of payroll control record is automatically changed with each step performed in
payroll run.
Payroll Run
This is used to determine the current payroll period from the payroll control record and
performs payroll using the values you entered in the payroll program.
You have to check if the payroll process has completed successfully or any errors
have occurred. When the payroll runs with errors, system displays error messages.
You can get a descriptive payroll log.
You can put the payroll status to check the payroll results during this phase. This
way you make sure that no changes are made to the payroll-relevant data which
could affect the payroll past or present.
You can put a check on the results of payroll run after completion.
You can also get a report that tells you the stored payroll result. Using this report,
each employee can see the contents of all internal tables that has payroll results
and you can also check all partial runs.
All personnel numbers for which the master data is corrected are grouped again in a list-
Matchcode W. The next step is the payroll correction run, which involves payroll run for
this matchcode W (only for corrected personnel numbers).
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Release payroll
When you have many employees in the correction run, you can run the correction payroll
run as a background job. However, if there are only few employees, it can also be run
online like a regular payroll run.
Posting to Accounting
In few cases, errors can popup, which means that you should change the master and time
data again. If it occurs then run the payroll correction and this means posting to accounting
again. In the end, you exit the payroll.
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19. SAP HR – Gross Pay SAP HR
You can define net salary as gross salary minus all the deductions that are made because
of statutory compliances of a country and organization such as EPF, ESI, Income Tax, etc.
It includes other dues like home loans, car loans and advance salary taken, which you owe
to the company and any legal dues that an employee has to pay.
CTC or Cost to Company is defined as gross salary + Benefits, Perks and is called as total
Cost to company.
Example
Consider the following example:
Deductions:
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Number/Unit: This depends on the wage type and the system checks the
combination entered.
Currency: The currency varies as per the company code. The system automatically
suggests the currency to be used as per the company code.
First payment date and interval/unit: This determines the recurring payment
to be made and it automatically identifies when the payments are to be made.
When there is no entry for this field, by default, the system makes payment as per
wage type in each payroll period.
During payroll run in the Payroll Status Infotype (0003), the system also flags the payroll
correction field for all the rejected personnel numbers. In case you correct the master or
the time data for a personnel number, this field is also flagged.
All personnel numbers for which the master data is corrected are grouped again in a list-
Matchcode W. The next step is the payroll correction run, which involves payroll run for
this matchcode W (only for corrected personnel numbers).
Payroll Run
This is used to determine the current payroll period from the payroll control record and
performs payroll using the values you entered in the payroll program.
You have to check if the payroll process has completed successfully or any errors
have occurred. When the payroll runs with errors, system displays error messages.
You can get a descriptive payroll log.
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You can put the payroll status to check the payroll results during this phase. This
way you make sure that no changes are made to the payroll-relevant data which
could affect the payroll past or present.
You can put a check on the results of payroll run after completion.
You can also get a report that tells you the stored payroll result. Using this report,
each employee can see the contents of all internal tables that has payroll results
and you can also check all partial runs.
Payroll Integration
Payroll is normally integrated to these systems- FI/CO, Benefits, Time Management and
Expenses.
Administration
Payroll Processing
Payroll
Reporting
Benefit plans
Insurance plans
Health plans
Miscellaneous plans
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20. SAP HR – Payroll Cycle SAP HR
Payroll is processed to calculate the basic salary for the employees and other payments
like overtime, shift allowance, and other bonuses. A payroll is processed at certain point
of time.
You need to mention the payroll area for which payroll should run. To execute payroll run
for multiple payroll areas, you need to run the individually for each payroll area. To lock a
payroll for a particular employee, you should use lock Personnel number function.
Payroll control record is used to control the payroll process as mentioned in previous topics
and status of payroll control record is automatically changed with each step performed in
payroll run.
Payroll Run
This is used to determine the current payroll period from the payroll control record and
performs payroll using the values you entered in the payroll program.
You have to check if the payroll process has completed successfully or any errors
have occurred. When the payroll runs with errors, system displays error messages.
You can get a descriptive payroll log.
You can put the payroll status to check the payroll results during this phase. This
way you make sure that no changes are made to the payroll-relevant data which
could affect the payroll past or present.
You can put a check on the results of payroll run after completion.
You can also get a report that tells you the stored payroll result. Using this report,
each employee can see the contents of all internal tables that has payroll results
and you can also check all partial runs.
All personnel numbers for which the master data is corrected are grouped again in a list-
Matchcode W. The next step is the payroll correction run, which involves payroll run for
this matchcode W (only for corrected personnel numbers).
Release payroll
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When you have many employees in the correction run, you can run the correction payroll
run as a background job. However, if there are only few employees, it can also be run
online like a regular payroll run.
Posting to Accounting
In few cases, errors can popup, which means that you should change the master and time
data again. If it occurs then run the payroll correction and this means posting to accounting
again. In the end, you exit the payroll.
Remuneration Statement
When the payroll is run, a pay slip is generated and this is the first report that is used
after payroll processing. Pay slip is also called Remuneration statement.
Processing of payroll and generating statements vary each month as per the different input
types and payment type in each month.
2. A new window HR form Editor: Initial Screen opens. Enter the code for Country
grouping, Form name and click Create.
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4. This will create a new form or you can also copy an existing form.
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You can find administrative information like when and who has created the form.
Attribute Area: This is used to determine the size of the form, name and type.
Person responsible: This shows the person responsible and who can make the
changes. There is a Check box, Changes only by person responsible. Using this,
you can restrict the changes in the form by unauthorized persons, allowing
modification only by the creator.
Background
Single fields
Window
Line Layout
Cumulation IDs
Text Modules
Rules
Documentation
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3. Click the save icon at the top and it will open the Variant Attributes screen.
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You can use this pay slip now. Note that the pay slip type is form class CEDT.
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21. SAP HR – Universal Work List SAP HR
Universal Work List (UWL) is a SAP Enterprise Portal element, the users can personalize
as their central point of access to their tasks. Universal worklist UWL allows the use of
current work items that are generated by the system when running SAP HR process in the
system.
Uses of UWL
Universe worklist is used for all the portal roles that are used in all the processes
in SAP HCM Processes and Forms.
You cannot set up a Universal worklist UWL for the roles that trigger the process
start and are not involved in other process steps.
To set up the additional roles using SAP HR Processes and Forms, Universal Worklist
must be configured accordingly integrated with portal roles in the system.
To set up UWL- go to portal -> Select System Administration -> System Configuration ->
Universal Worklist and workflow -> Universal Worklist -> UWL System Configuration
You can set up a new connector if you do not have a connector in the system connected
to system alias otherwise you can also use an existing one.
Advantages-
You can access guided Procedure work items in common UWL inbox.
You can launch new items, open items in the same window or in new window.
To manage the work items you can use inbox customization flexibility.
You can use the pull mechanism that allows you to use auto or manual refresh
options for work items.
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There are various critical data in HR system that needs to be secured. For example,
Employee Personal data, Pay slips, Time sheets, Expense Details, Salary account Details,
HR system configuration details, HR policies, etc.
Authorization Objects
Authorization objects are used to perform complex check of authorizations when a user
performs some actions. An authorization object groups multiple authorization fields.
Authorization objects are used to restrict the access on personal data.
Authorization Field
Long Text
PERSA
Personnel Area
PERSG
Employee Group
PERSK
Employee Subgroup
INFTY
Infotype
SUBTY
Subtype
VDSK1
Organizational Key
AUTHC
Authorization Level
Enqueue and Dequeue E and D: is used for write access using the asymmetrical
double verification principle.
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E is used to allow the users to create and change locked data records.
S is used for write access using the Symmetric Double Verification Principle.
Data Preparation and Analysis: This includes the fact and figures that are
available in HR system.
Data Mapping: It includes mapping of data from data sources from non-SAP
system to a SAP system.
Data Extraction and Conversion: This includes data extraction from legacy
system and converting the data to a format, which is acceptable by SAP system.
Testing and data validation: Once the data is uploaded, you can validate the
data like SAP Standard Reports and SAP Database Tables.
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